The market is in the process of establishing a short term bottom, which is part of the bear flag formation pattern. Once the low edge of the flag is set - expect and automatic rally to set the top of the bear flag. Make no mistake this is not a reversal. The action often referred as a relief rally. Once the top is set expect a consolidation within the flag. This is the market action 101.
Technicals on the daily chart (macd, rsi, projected swing expansion) support a short term bottom.
The next week is full of events that would keep the volatility afloat: FOMC, big tech earnings.
The expected weekly move defined by the option market is: 13975 - 14845. The market remains inefficient, so that range may not hold.
The intraday traders finds this market regime very favorite. Setups are offered for both sides despite the overall bear trend.
Good luck!
Follow me on twitter for daily updates and intraday charts.
01/23/2022
Technicals on the daily chart (macd, rsi, projected swing expansion) support a short term bottom.
The next week is full of events that would keep the volatility afloat: FOMC, big tech earnings.
The expected weekly move defined by the option market is: 13975 - 14845. The market remains inefficient, so that range may not hold.
The intraday traders finds this market regime very favorite. Setups are offered for both sides despite the overall bear trend.
Good luck!
Follow me on twitter for daily updates and intraday charts.
01/23/2022